Reborn in America: Starting as a California Resident
Chapter 172 23 Billion Unrealized Gains
On May 22, when the spot-futures price spread widened to $1.2, we sold December futures contracts on COMEX at $8.5 and purchased spot goods from Swiss refiner Valcambi at $7.3. We then deposited the goods into JPMorgan Chase's bonded warehouse to generate warehouse receipts, making a net profit of $0.95 per ounce. We executed a total of 30 million ounces.
When the London Bullion Market Association questioned the authenticity of the warehouse receipts, Julian personally led an armed escort team to Zurich, completing physical inspections within 72 hours. This was also due to my efforts in coordinating resources from all parties.
"On June 15th, I cooperated with their team to launch the cognitive warfare matrix."
Catherine pointed to the detailed plan in the document and said, "We hired an MIT professor to publish the 'Silver Solar Demand Model,' which predicts that solar energy demand will account for 45% of supply in 1985."
They also bribed a COMEX warehouse manager to "accidentally" leak data showing a sharp decline in inventory;
The Economist published a feature article titled "Silver Will Become the New Gold Standard."
This series of actions led to a collective entry of pension funds into the market, causing silver's weekly trading volume to surge by 400%.
"I heard that you collaborated with Julian on a bit of leverage art in July?"
"good!"
When Catherine heard Henry's question, her tone was smug, and the corners of her mouth turned up slightly, revealing a confident smile.
"We used our silver holdings as collateral to borrow $500 million from Credit Suisse, transferred the cash into the London gold pool to buy gold bars, and then used the gold as collateral to obtain $750 million from Deutsche Bank. We repeated this process three times, ultimately leveraging $22 billion in funds."
To date, the stock has risen by 122%. After deducting the Chicago Board of Trade's 3.2% margin interest and 0.15% brokerage commission, the net profit is... $23.7 billion.
She spoke slowly, uttering each number clearly, as if showcasing her illustrious military achievements.
Henry looked at the astonishing profit figures on the report in his hand, his face beaming with joy. He could no longer contain his excitement and grabbed Catherine's hand, saying excitedly, "Catherine, my dear sister, you did a fantastic job this time!"
From the very beginning, I knew that entrusting this matter to you was the right decision; it was truly the best decision I've ever made!
Henry has always believed that professional matters should be left to professionals.
Although he is a time traveler with a vision ahead of his time, he understands his limitations in the complex, ever-changing, and unpredictable financial market.
Even if you can act according to the best strategy in your memory, it is difficult not to attract the attention of others.
Those who manipulate the world's financial markets are all extremely shrewd; how could they be easily controlled by them?
Catherine and Henry grew up together, and they knew each other far better than anyone else.
To others, Catherine may just be a rich heiress who is single-mindedly devoted to art and has a quirky personality;
But in Henry's heart, Catherine was exceptionally intelligent and decisive, a true heroine.
With the advice and strategies of her advisory team and the support of her deep family background, the energy she can unleash is beyond imagination.
Catherine blushed slightly at Henry's praise, her eyes sparkling with joy. Like a child who had been praised, she winked playfully and said, "Of course, brother, you must never underestimate the power of art."
Art has taught me to see the world from different perspectives, and finance is just one way of expressing it.
After saying that, she neatly tidied up the documents on the table, her expression calm and confident. "This success is inseparable from the excellent team you assembled."
It was through everyone's concerted efforts that everything proceeded smoothly.
I'm also very happy to have been able to play my part and realize my own value in this process.
Changing the subject, Catherine suddenly leaned closer to Henry, a sly smile on her face, like a cunning little fox. She waved her hand in front of Henry and said coquettishly, "But Henry, I've been working so hard to keep an eye on things for you, you have to show some appreciation, right?"
You have no idea how much I sacrificed for this!
As she spoke, she shook Henry's arm, refusing to let it go.
She knew perfectly well that her younger brother was now rolling in money. Not counting the billions of dollars in unrealized profits in the futures market, the two companies he founded alone were valued at over a billion dollars. She couldn't miss the opportunity to ask for kickbacks from such a wealthy brother.
Henry chuckled softly as he looked at Catherine's adorable appearance. "Don't worry, my dear sister, I'm not as petty as you!"
Once this is over, I'll definitely give you a generous reward, one that will surely satisfy you!
"good!
You said it yourself!
Catherine smiled broadly upon receiving Henry's promise.
She knew that the big red envelope that was meant for her was definitely in the bag.
"Oh, right, there's one more thing."
They inquired in detail about various information, including the latest moves of institutional investors and various rumors circulating in the market.
Catherine suddenly remembered something and her expression became somewhat worried. "Recently, there have been reports that the US government may intervene in the silver market. This surge has already had a significant impact on the real economy."
If the government actually takes action, the market will inevitably experience a major upheaval.
After listening, Henry unconsciously tapped his fingers lightly on the walnut wood table. After a moment of silence, he looked intently at Catherine: "Given the current situation, if the government really intervenes in the silver market, it will be a huge storm."
You and your think tank must have been thinking a lot about this lately. Tell me your thoughts, I'd like to hear them.
"good!"
Catherine sat up straight, cleared her throat, and said confidently, "After discussing day and night for some time, we have indeed come up with a relatively mature solution. Please take a look and see if it is feasible."
The first step is cooperation with banks.
Previously, we collaborated with Credit Suisse and Deutsche Bank on leveraged operations, and both parties profited significantly.
With increasing market volatility, we plan to take the initiative and share our in-depth market analysis and subsequent response strategies with them.
The goal is to secure more support from them in terms of funding and resources. At the same time, we must finalize with them specific measures to ensure the safety of our funds and the liquidity of our assets during periods of extreme market volatility.
Secondly, we plan to diversify risk in our silver holdings.
You can transfer some of your silver to Jurong International Metal Warehouse in Singapore, and convert some of your physical silver into physical items such as silver bars and coins. You can even consider investing in some silver jewelry and art pieces.
This way, you can preserve your silver assets, mitigate the risks of large price fluctuations to some extent, and these physical assets might even appreciate in value during periods of market turmoil.
......
In addition, $5 million of the funds obtained from leveraged operations were set aside as an emergency reserve and deposited into a safe bank account in Switzerland.
This money is our trump card; we absolutely will not use it unless absolutely necessary, primarily to ensure the safety of our core assets.
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